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Macro-Environment of Business Travel and Tourism

University: University College London

  • Unit No: 8
  • Level: Post Graduate/University
  • Pages: 8 / Words 1906
  • Paper Type: Assignment
  • Course Code:
  • Downloads: 74
Question :

This assessment will cover following questions:

  • What are the negative and positive elements utilised to conduct an event.
  • Analyse the response or recovery strategies of two stakeholders in regards to the macro-environmental event.
Answer :


Tourism is travel for pleasure or may be for a business and it can be a domestic or international. Tourism creates direct impact upon the economy of the country. In the same way, current report is also based upon the topic i.e. over- tourism in Barcelona, which is a macro environment event in Spain due to which number of local people got affected. That is why, present study will provide a deep knowledge of tourism and describe the strategies proposed by two stakeholder i.e. Local community / resident and overview tourist for a business or leisure. Study also consider all the key element which are proposed by the stakeholder and respond those in positive as well as negative manner.


Over tourism in Barcelona, Spain

Barcelona faces over tourism such that in 1990, there were only 11500 cruise passengers which were arrived, but by 2017, the number increases and it reached up to 2.7 million into one of the one cruise terminals (Nilsson and Eskilsson, 2019). Thus, the city was the home port for Allure of Seas and it has world's largest cruise ship with maximum capacity 6500 passenger, further, in 2019, it is also earned the unwanted title of most pollutes port because of regular tourist. Such that there were 32 million annual visitors and it creates a negative impact as well (Over tourist in Barcelona, 2018). Such that in 2017, there were 125000 legally registered beds in hotels and 50000 illegal beds and this in turns, increases the demand of tourist accommodation. This in turn affect the local people, their quality of life in just opposite way, that is why two stakeholder develop different strategies in order to respond the problem of over tourism in Barcelona, Spain.

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Response and recovery strategies by business or leisure

The business or leisure develop many strategy such that as per the 2010-2015 plan which is the strategy that recognized that 'the massification and standardization' of tourism offer and also negative impact that link with it and as a result, it become a contributing factor for Barcelona (Wall, 2020). It is so because it creates negative impact upon the quality life of local people and this in turn, also spoiling the visitor's experience as well. Barcelona is actually famous and become an International tourist destination because of Olympic Games in 1992 and due to excessive promotion the place become one of the best tourist destination in world (Aguilar-Meléndez and et.al., 2019). The strategic plan is also helps Barcelona to address the internal and external mobility in order to manage tourism flows because of seasonal variation, temporary visits and the means of transport.

In addition to this, the business and leisure should also start focusing on the pricing and rationing such that the hotels may charge higher from the tourist when there is a high demand or over tourism. On the other side, business may also lower down the prices only when there is a less demand and crowding (Bourliataux-Lajoinie, Dosquet and del Olmo Arriaga, 2019). This strategy will creates positive impact upon the local public such that they will easily use the infrastructure of the city without facing issue of overcrowding. On the other side, this strategy also have negative impact such it decreases the number of tourist within a city and as a result, the financial performance of the business and leisure also affected in opposite manner (Hospers, 2019).

Moreover, business and leisure also develop another strategy i.e. accommodation. This includes the deregulated housing market which also attract international investor and as a result, this further cause inflation in housing cost as well as housing rental which can be far more lucrative as letting to resident and families (María-del-Mar, Borrajo-Millán and Liu, 2019). This the positive key element in this strategy is such that by restricting the availability of the accommodation, visitors arrivals may also be restricted and this in turn, helps to avoid the problem of over tourism in Barcelona. On contrary, it is critically analyzed that this is not possible to develop this strategy in entire leisure and this in turn, leads to creates negative impact and do not control the tourism as well (Goodwin, 2017).

Moreover, another negative element and issue arise when there is a concentration of tourism in particular areas and even tourism is also comes to dominate, or else where there is a unlicensed and unregulated accommodation that also creates disturbance and in turn it also raise issue of health too (Alonso-Almeida, Borrajo-Millán and Yi, 2019).

Additionally, business and leisure also start introducing different marketing and advice I,e, demarketing which is actually used by the business in order to discourage the visitors and in turns, it assist to reduce the negative impact (Milano, Cheer and Novelli, 2018). This creates positive impact because there is a range of marketing methods available in the market which helps to attract the tourist but when there is a sudden reduction in the promotional activity then it definitely creates positive impact upon the quality life of local people and this also leads to deteriorated to discourage visitors. Further, there is a negative impact as well because when business start using demarketing it affect their overall business in opposite manner which in turn reduce the overall financial performance of the company because their main source is tourism. Hence, this strategy has both positive and negative impact (Milano, Novelli and Cheer 2019).

Response and recovery strategies by local community/ residents

Over-tourism is the key factor that affect local community and quality of their life, to reduce its impact on residential people and their living standards, local community develop recovery strategies. Barcelona effectively managed over-tourism challenge by engaging local communities in addressing this issue and use multi stakeholder approach. Local communities restrict available accommodation service for visitor as it reduce the impact of over-tourism on residential people living at Barcelona. Local people give accommodation facility to visitors, occasionally when the hotels are booked and there are no space to stay. It increases the issue and people are visiting this destination instead of choosing other place. To reduce over-tourism, local people take their actions, they do not offer in house facility to tourist. They simply reduce number of placed to stay, that contribute to reduce over-tourism effectively. Local communities took to street to protest that their house was saturated with tourists, tourism causing more harm than good, it affect living standards of people and their life style. Overcrowding destroy holiday experience of tourist, that is not good for this destination. Responsible tourism is the best way to create better places to live, it places needs to improve Barcelona for benefits of local communities.

In addition to this, people take extra charges rather than before from visitors in which most of the tourist are not able to pay extra amount and decided to book hotel rooms instead of house. Restricting availability of accommodation visitor arrivals is restricted, it is the best action taken by local people that provide benefits to all of them.

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When the prices of rooms will increase it leads to reduce over-tourism, it is also considered as the best strategy taken by local people in context of above issue. Pricing is the technique that will be used to reduce over-tourism, it is part of effective strategies. During peak seasons, local people increase prices of services and products purchased by visitors that impact on decision-making procedure of tourist, and they start avoid visit Barcelona. Pricing factors matter a lot, its purpose is to limit level of tourism and make it stable in nation.

Local communities make effective plan, in order to minimize negative effect of over-tourism, they decided to provide limited service and make charge when the demand is increased.

The major strategy for dealing with the state of over tourism in Barcelona, Spain is the building of better infrastructure in the tourist area. This is majorly because of the reason that if the infrastructure that is the set up in which the tourist is arranged is better then the place will not look over crowded (Ateljevic and Page, 2017). Thus, for this the strategy must be employed in the direction of building the infrastructures in more organized manner. This is done to ensure that all the tourist is arranged in the provided set up only. Thus, this will help in assembling the tourist and all the other people coming to Barcelona in more organized way so that this will not seem to be much crowded.

Thus, the major positive aspect of this strategy is that this will build the goodwill of the area as it is easily able to manage so high number of people with more easily. Also, the other positive impact is that this will attract more of the people to come to Barcelona and enjoy their trip in that country. But in contrast to this the major negative impact of this strategy is that this will involve a huge cost because of the reason that for developing the infrastructure the country will need to employ much money. Also, another major negative impact is that this will also need to have a strong market research which will consume a lot of time (Baum, 2016). This is majorly because of the reason that there are frequently many changes taking place in the market which need to be addressed by the country.

All above recovery strategies and responses by local communities in context of over-tourism in Barcelona will provide better results as it help to decrease the negative impact of over-tourism. Limited facilities and high charges drop the expectation of visitors, before taking decision to spent holidays they make comparison between Barcelona hotel and local facilities to other destination.

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By summing up above report, it has been concluded that over tourism is become one of the major issue in Barcelona such that it affect the local community as well as business. That is why, report concluded different strategies which helps to overcome the problem such that business or leisure start raising the price of accommodation when the demand is higher and vice versa. Further, report also concluded that by using demarketing technique also help the business to overcome the issues. Moreover, report concluded that local community and resident also start going in the street to show the world how much they disappointed with the over tourism situation and as a result, they put signs all over the city of Barcelona by calling tourist as a terrorist.

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Books and Journals

  • Aguilar-Meléndez, A. and et.al., 2019. Probabilistic Assessment of Seismic Risk of Dwelling Buildings of Barcelona. Implication for the City Resilience. In Urban Resilience for Risk and Adaptation Governance (pp. 229-265). Springer, Cham.
  • Alonso-Almeida, M. D. M., Borrajo-Millán, F. and Yi, L., 2019. Are Social Media Data Pushing Overtourism? The Case of Barcelona and Chinese Tourists. Sustainability.11(12). p.3356.
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